Global Markets Dip as Trump’s Tariffs Approach

Stock Markets and Key Figures

As “Liberation Day” nears, worldwide stock markets experienced a downturn on Monday, fearing the upcoming tariffs. From Wall Street to Wellington, New Zealand, markets faced significant sell-offs.

US Market Declines

• The S&P 500 fell by 0.8%, nearing a 6% loss for Q1.
• The Dow Jones Industrial Average inched up by less than 0.1%.
• The Nasdaq Composite dropped 1.6%, due to tech stock declines.

Asian Market Losses

• Japan’s Nikkei 225 plummeted 4.1%.
• Hong Kong’s Hang Seng and China’s Shanghai Composite also declined.

European Market Declines

• London’s FTSE 100, Paris’ CAC 40, and Frankfurt’s DAX all fell over 1%.

Currency and Commodities

• Euro/dollar: DOWN to $1.0814 from $1.0838.
• Pound/dollar: DOWN to $1.2921 from $1.2947.
• Dollar/yen: DOWN to 149.71 yen from 149.72 yen.
• Euro/pound: UP to 83.69 pence from 83.68 pence.

Despite market declines, oil prices rose:

• West Texas Intermediate: UP 2.4% to $71.04 per barrel.
• Brent North Sea Crude: UP 2.1% to $74.27 per barrel.

Market Sentiment

Goldman Sachs economists raised inflation forecasts and lowered US growth projections, predicting a 35% chance of recession in the next year, up from 20%. Tariffs may worsen inflation and slow global growth, causing businesses and consumers to cut spending.

Tesla and Tech Stocks Lead Declines

Tesla dropped 4.7%, and Nvidia fell 4.1%, reflecting concerns about overvalued tech stocks. United Airlines and Delta Air Lines also saw losses, indicating a possible broader economic cool-down.

Global Impact and Rising Fears

This worldwide sell-off shows growing concerns over economic risks from new tariffs. Investors anticipate further market turbulence as Trump’s tariffs loom, and analysts watch for potential global economic ripple effects.